Check your mortgage or tenancy agreement
The first thing you should do is seek approval from your lender or landlord if you are renting, before commencing your home beauty business. In some situations, home mortgages and rental agreements prohibit a business from being conducted on the premises, so this should be the first call you make.
Call your local council
Councils generally support home businesses and recognise the economic potential, however you must gain council approval before operating your home beauty salon business.
Your council will also be able to provide information for things like if you need to provide off-street parking for your clients, or if you want to erect signage.
Every council has different regulations to provide approval, so make sure that it’s your local one that you contact.
Find the right business licences
Speak to your insurance broker
Advise your insurance broker of your home beauty business activities. They will let you know of any requirements, costs, and restrictions from an insurance perspective.
A home-based business is exposed to many risks and hazards and it’s important to understand that home and contents insurance policies generally exclude any business operations at home and will not cover your beauty business. You will need to purchase separate insurance policies to protect you and your business.
Types of insurances that you may need for your home beauty business include:
- – Public and Products Liability Insurance
- – Professional Indemnity Insurance
- – Business Insurance – business contents and stock, equipment
- – Business Interruption Cover
Doesn’t my Household Insurance cover my Home Beauty Business?
The short answer is, no, it does not.
Say a client is visiting your home salon and they trip on a toy you’ve accidentally left on the floor and they suffer an injury. You could possibly be looking at a compensation claim as well as legal costs and quite possibly a debilitating impact on you and your business.
Although your home insurance might already have Public Liability included, this will not usually cover potential claims arising from your home-based business. It can take only one catastrophic event like this to have a devastating impact that could leave you without a business and in serious debt.
Even if you already have policies in place, it’s good practice to do a health check on your insurance to make sure you’re still adequately protected should the unthinkable happen.
It’s also a good idea to compare other policies in the market. Whilst it may seem easier to go with the same provider you use for your personal insurances, they may not be able to offer the specific business cover you need for the treatments and professional services you are offering in your beauty business.
